10/06/2008 Council Packet (2) - Laserfiche WebLink

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How to Maintain Streets with the Least Burden to Taxpayers While the Home Rule Charter has, indeed, provided every resident of Lino Lakes a vote on whether or not to fix city streets, many residents don't understand some of the key considerations in fixing roads. Here's a quick primer. Do the Roads Need to Be Fixed? Think: Minnesota winters. While roads in California last seemingly forever, ours face severe weather swings and involve salt, bitter cold, intense heat, tremendous moisture, and SUVs that grow bigger and heavier monthly. Unless there is a wise, consistent, ongoing maintenance plan, the cost to eventually fix them will be enormous. How Do Most Cities Pay for Roads? Most cities consider road maintenance to be part of "public improvement " — something owned by all residents and benefiting all residents. As such, city governments oversee the maintenance of streets. Part of the leaders' stewardship of the city is ensuring streets are maintained. Under the guidance of Minnesota Statute, Chapter 429, most cities approach public financing of streets as part of a four -part process: 1. Determine the most fiscally prudent way to maintain the street and assign a cost; 2. Assess a portion of the costs to property owners who benefit the most; 3. Spread remaining costs evenly among all remaining taxpayers; 4. Minimize the use of city -wide property taxes. How Does Our City Pay for Roads? For routine maintenance, the city has a general fund it taps for repairs. When a street has reached the end of its useful life, or needs to be reconstructed for whatever other reason, usually the costs are too high for the general fund. In this case, our city must first ask voters to agree to a special assessment to cover the cost of a project. Only once in 12 years have residents agreed to pay for a public improvement with a special assessment. This record of public referenda defeat is one reason so many of our roads are in such poor condition. Fast Facts The citizens of Lino Lakes own 84 miles of paved roads valued at 590 million and representing a significant asset for the city. 11 miles of those roads now need to be reconstructed and more will continue to deteriorate each year the city is unable to initiate a pavement repair plan. Did You Know? The city has financing methods avail- able to reconstruct roads today that don't require a referendum. How- ever, under one option, property taxes assessed to all citizens would immediately increase by nearly 20 %- -far higher than if the city adopted Minnesota Statute, Chapter 429. Another option involving recon- struction bonds would require im- mense complexity and even further delays than we experience today. League of Minnesota Cities' Special Assessment Guide for All Citizens All communities in Minnesota except for Lino Lakes allow city managers the authority to assess the cost of maintaining and repairing local streets and roads without a citywide referendum. In the spirit of transparency, accountability, and fairness many cities follow the League of Minnesota's Special Assessment Guide to ensure infrastructure projects are necessary, fair, and welcome by affected citizens. The Guide outlines a step - by -step process — explicit under MN Statute Chapter 429 —for citizens to register objections to city- driven infrastructure improvement LEAGUE OF MINNESOTA CITIES projects that involve special assessments. The three steps the Guide counsels are: • Challenges to the feasibility study; • Requesting an assessment waiver; • Legal appeal of the assessment taken to district court. Although the city may still move forward with a maintenance project under Chapter 429 despite objections, citizens will always have the right to vote elected officials out of office if they continually overlook citizen objections. A copy of the League of Minnesota Cities Guide to Special Assessments may be obtained at Lino Lakes City Hall. 5